Network Infrastructure - North America

North America

Revenue in the Network Infrastructure market is projected to reach US$58.86bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$40.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.38%, resulting in a market volume of US$84.03bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$230.70 in 2024.
In global comparison, most revenue will be generated in China (US$63,560m in 2024).

Key regions: India, China, Brazil, Indonesia, Japan

Definition:

The Network Infrastructure market focuses on hardware resources essential for service provider and enterprise networks. This market specifically focuses on solutions designed for the complex networking requirements of businesses and organizations, setting aside options like consumer-grade networking hardware products such as basic WIFI routers and network switches. These network infrastructure components are crucial in environments where reliable and secure connectivity, as well as efficient network operations, are paramount, establishing them as a fundamental part of the IT infrastructure in various industries.

Structure:

The Network Infrastructure market is structured in two markets based on the services model provided by the companies.

Service Provider Network Infrastructure covers the hardware resources of telecommunication service companies that enable wired and wireless network connectivity and communication to transfer voice and data.
Enterprise Network Infrastructure covers the hardware resources that enable wired and wireless network connectivity, communication, operations, and management of enterprises.

Additional Information:

The Network Infrastructure market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Network Infrastructure market include companies such as Huawei, HPE, Cisco, and Ericsson.

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Market

Region

Region comparison

Currency

Analyst Opinion

Over the past few years, the Network Infrastructure market in North America has experienced significant growth and transformation driven by technological advancements and increasing demand for high-speed connectivity.

Customer preferences: Customers in North America are increasingly prioritizing reliable and high-performance network infrastructure solutions to support their growing digital needs. With the rise of cloud computing, IoT, and big data applications, businesses and consumers alike are seeking robust network infrastructure that can handle large volumes of data and provide seamless connectivity.

Trends in the market: In the United States, there is a growing trend towards the adoption of 5G technology, driving investments in network infrastructure to support the rollout of this next-generation network. This trend is fueled by the increasing demand for faster data speeds and low latency, especially in urban areas. Additionally, there is a shift towards software-defined networking (SDN) and network function virtualization (NFV) solutions to improve network flexibility and scalability.

Local special circumstances: Canada, on the other hand, is focusing on expanding its broadband infrastructure to bridge the urban-rural connectivity gap. The Canadian government has been investing in initiatives to improve broadband access in remote areas, leading to opportunities for network infrastructure providers to participate in these projects. Moreover, with the growing emphasis on cybersecurity, there is a heightened demand for secure network infrastructure solutions in both the US and Canada.

Underlying macroeconomic factors: The strong economy in North America has been a key driver of the growth in the network infrastructure market. Businesses are investing in upgrading their network capabilities to stay competitive in the digital age, leading to a steady demand for network infrastructure products and services. Additionally, the increasing digitalization of various industries, such as healthcare, finance, and manufacturing, is fueling the need for advanced network infrastructure to support data-intensive applications and processes.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.